II. CONCEPTS AND DEFINITIONS USED IN FOOD BALANCE SHEETS

1. COMMODITY COVERAGE

As already indicated, all potentially edible commodities should, in principle, be taken
into account in preparing food balance sheets regardless of whether they are actually
eaten or used for non-food purposes. The definition of a complete list of potentially
edible commodities presents virtually insurmountable difficulties - both conceptual and
statistical. For practical purposes, therefore, a pragmatic list of commodities will have
to be adopted. Generally, food balance sheets are constructed for primary crops, livestock
and fish commodities up to the first stage of processing in the case of crops and to the
second (and sometimes the third) stage of processing in the case of livestock and fish
products. The reason for the restriction on the higher stages of processing is the
difficulty in obtaining data for all the varied forms of processed products, and even more
difficult, in tracing the components of the processed composite products. The following
list of commodities and their classification into major food groups is proposed for food
balance sheet purposes. It should, however, be adjusted according to the availability of
commodities in a given country.

LIST OF COMMODITIES
CLASSIFIED BY MAJOR FOOD GROUPS

CEREALS AND PRODUCTS

OILCROPS

Wheat

Soybeans

Rye

Coconuts (incl. copra)

Barley

Oil palm fruit

Oats

Groundnuts

Maize

Olives

Rice

Rape and mustard seed

Mixed grains

Sunflower seed

Buckwheat

Cottonseed

Sorghum

Linseed

Millet

Hempseed

Quinoa

Sesame seed

Other cereals

Other oilcrops

ROOTS, TUBERS AND PRODUCTS

VEGETABLES AND PRODUCTS

Potatoes

Beets

Sweet potatoes

Carrots

Cassava

Turnips

Taro

Rutabagas or swedes

Yams

Onions, green

Other roots and tubers

Onions, dry

Artichokes

SUGARS AND SYRUPS

Tomatoes

Sugar cane

Asparagus

Sugar beet

Cabbage

Sugar, refined

Cauliflower

Sugar, non centrifugal

Celery

Molasses

Kale

Honey

Lettuce

Other sugars and syrups

Spinach

Beans, green

PULSES

Broad beans, green

Beans, dry

Chilli peppers

Broad beans, dry

Garlic

Peas, dry

Cucumbers

Chick peas

Mushrooms

Cow peas

Eggplant

Pigeon peas

Peas, green

Lentils

Pumpkins

Vetches

Squash

Lupins

Gourds

Other pulses

Okra

Radishes

TREE NUTS

Other vegetables

Almonds

Chestnuts

FRUIT AND PRODUCTS

Areca nuts

Plantains

Pistachios

Bananas

Hazelnuts

Oranges

Walnuts

Lemons and limes

Brazil nuts

Grapefruit and pomelos

Kola nuts

Tangerines, mandarins, clementines, satsumas

Cashew nuts

Other citrus fruit

Other tree nuts

FRUITS AND PRODUCTS (Cont.)

MEAT

Melons

Beef and veal

Watermelons

Buffalo meat

Apples

Pig meat

Apricots

Mutton and lamb

Avocados

Goat meat

Cherries

Horse meat

Figs

Chicken meat

Grapes

Goose meat

Mangoes

Duck meat

Papaya

Turkey meat

Peaches

Rabbit meat

Pears

Game meat

Persimmons

Offal

Pineapples

Plums

EGGS

Quinces

Hen eggs

Blueberries

Other eggs

Cranberries

FISH AND FISHERIES PRODUCTS

Gooseberries

Freshwater fish

Raspberries

Demersal fish

Strawberries

Pelagic fish

Kiwi

Crustaceans

Other fruits, fresh

Molluscs

Aquatic mammals meat

Dates

Aquatic plants

Figs, dried

Prunes
Currants

MILK AND CHEESE

Raisins

Other dried fruits

Milk

Cow milk

STIMULANTS

Goat milk

Coffee

Sheep milk

Cocoa beans

Buffalo milk

Tea

Skim milk

Mate

Evaporated, unsweetened, whole

Condensed, sweetened, whole

SPICES

Evaporated, unsweetened, skim

Pepper

Condensed, sweetened, skim

Pimento

Dried, whole

Vanilla

Dried, Skim

Cloves

Cream

Other spices

Cheese

ALCOHOLIC BEVERAGES

Hard cheese

Wine

Semi-soft cheese

Beer

Soft cheese

Beverages, fermented

Beverages, alcoholic

OILS AND FATS

Vegetable oils

Rape and mustard seed oil

Sunflower seed oil

Cottonseed oil

Linseed oil

Hempseed oil

Sesame seed oil

Copra and coconut oil

Palm kernel oil

Palm oil

Soybean oil

Olive oil

Maize oil

Animal fats

Butter

Ghee

Other animal fats

Fish liver oil

Whale oil

MISCELLANEOUS

Infant food

Beverages, non-alcoholic

Ice cream

Other food preparations

Under each item, primary as well as derived commodities, up to the first stage of
processing, are considered as appropriate, e.g. wheat, wheat flour (instead of bread), or
milk, butter, ghee, skim milk, cheese (from whole milk and skim milk), dried and condensed
milk (from whole milk or skim milk).

2. SUPPLY AND UTILIZATION ELEMENTS

1. Production. For primary commodities, production should relate to the total
domestic production whether inside or outside the agricultural sector, i.e. including
non-commercial production and production in kitchen gardens. Unless otherwise indicated,
production is reported at the farm level for primary crops (i.e. excluding harvesting
losses for crops) and livestock items and in terms of live weight (i.e. the actual
ex-water weight of the catch at the time of capture) for primary fish items. Production of
processed commodities relates to the total output of the commodity at the manufacture
level (i.e. it comprises output from domestic and imported raw materials of originating
products). Reporting units are chosen accordingly, e.g. cereals are reported in terms of
grains and paddy rice. As a general rule, all data on meat are expressed in terms of
carcass weight. Usually the data on production relate to that which takes place during the
reference period. However, production of certain crops may relate to the harvest of the
year preceding the utilization period if harvesting takes place late in the year. In such
instances, the production of a given year largely moves into consumption in the subsequent
year.

In the sample Form II of the food balance sheet, located at the end of this document, a
distinction is made between "output" and "input". The production of
primary as well as of derived products is reported under "output". For derived
commodities, the amounts of the originating commodity that are required for obtaining the
output of the derived product are indicated under "input", and are expressed in
terms of the originating commodity.

2. Changes in Stocks. In principle, this comprises changes in stocks occurring
during the reference period at all levels from production to the retail stage, i.e. it
comprises changes in government stocks, in stocks with manufacturers, importers,
exporters, other wholesale and retail merchants, transport and storage enterprises, and in
stocks on farms. In practice, though, the information available often relates only to
stocks held by governments, and even this is, for a variety of reasons, not available for
a number of countries and important commodities. It is because of this that food balance
sheets are usually prepared as an average for several years as this is believed to reduce
the degree of inaccuracy contributed by the absence of information on stocks. Increases in
stocks of a commodity reduce the availability for domestic utilization. They are therefore
indicated by the - sign and decreases in stocks by the + sign since they increase the
available supply. In the absence of information on opening and closing stocks, changes in
stocks are also used for shifting production from the calendar year in which it is
harvested to the year in which it enters domestic utilization or is exported.

3. Gross Imports. In principle, this covers all movements of the commodity in
question into the country as well as of commodities derived therefrom and not separately
included in the food balance sheet.It, therefore, includes commercial trade, food
aid granted on specific terms, donated quantities, and estimates of unrecorded trade.As
a general rule, figures are reported in terms of net weight, i.e. excluding the weight of
the container.

4. Supply. There are various possible ways to define "supply" and, in
fact, various concepts are in use. The elements involved are production, imports, exports
and changes in stocks (increases or decreases). There is no doubt that production,
imports, and decreases in stocks are genuine supply elements. Exports and increases in
stocks might, however, be considered to be utilization elements. Accordingly, the
following possibilities exist for defining "supply".

Over the years, FAO has used all three concepts of "supply". In recent years
concept (c) has been adopted when preparing and publishing food balance sheets in order to
identify the quantity of the commodity in question which is available for utilization
within the country.

5. Gross Exports. In principle, this covers all movements of the commodity in
question out of the country during the reference period. The conditions specified for
gross imports, under 3. above, apply also to exports by analogy. A number of commodities
are processed into food and feed items. Therefore, there is a need to identify the
components of the processed material exported in order to arrive at a correct picture of
supplies for food and feed in a given time-reference period.

6. Feed.This comprises amounts of the commodity in question and of
edible commodities derived therefrom not shown separately in the food balance sheet (e.g.
dried cassava, but excluding by-products, such as bran and oilcakes) that are fed to
livestock during the reference period, whether domestically produced or imported.

7. Seed.In principle, this comprises all amounts of the commodity in
question used during the reference period for reproductive purposes, such as seed, sugar
cane planted, eggs for hatching and fish for bait, whether domestically produced or
imported.Whenever official data are not available, seed figures can be estimated
either as a percentage of production (e.g. eggs for hatching) or by multiplying a seed
rate with the area under the crop of the subsequent year.In those cases where part
of the crop is harvested green (e.g. cereals for direct feed or silage, green peas, green
beans) an adjustment must be made for this area.Usually, the average amount of
seed needed per hectare planted in any given country, does not greatly vary from year to
year.

8. Food Manufacture.The amounts of the commodity in question used during
the reference period for manufacture of processed commodities for which separate entries
are provided in the food balance sheet either in the same or in another food group (e.g.
sugar, fats and oils, alcoholic beverages) are shown under the column Food Manufacture.Quantities of the commodity in question used for manufacture for non-food purposes,
e.g. oil for soap, are shown under the element Other Uses.The processed products
do not always appear in the same food group.While oilseeds are shown under the
aggregate Oilcrops, the respective oil is shown under the Vegetable Oils group; similarly,
skim milk is in the Milk group, while butter is shown under the aggregate Animal Fats.Barley,
maize, millet and sorghum are in the Cereals group, while beer made from these cereals is
shown under the Alcoholic Beverages group.The same principle applies for grapes
and wine.

9. Waste.This comprises the amounts of the commodity in question and of
the commodities derived therefrom not further pursued in the food balance sheets, lost at
all stages between the level at which production is recorded and the household, i.e.
losses during storage and transportation.Losses occurring during the pre-harvest
and harvesting stages are excluded (see note on "Production").

Technical losses occurring during the transformation of the primary commodities into
processed products are taken into account in the assessment of respective
extraction/conversion rates.

Post-harvest losses in most countries are substantial owing to the fact that most of
the grain production is retained on the farm so as to provide sufficient quantities to
last from one harvest to the next.Farm storage facilities in many countries tend
to be primitive and inadequately protected from the natural competitors of man for food.Losses become even more serious in countries where agricultural products reach
consumers in urban areas after passing through several marketing stages.In fact,
one of the major causes of food losses in some countries is the lack of adequate marketing
systems and organization.Much food remains unsold because of the imbalances of
supply and demand.This is particularly true of perishable foods, such as fresh
fruit and vegetables.Post-harvest losses of fruit and vegetables of between 25 and
40 percent occur in many countries, mainly as a result of untimely harvesting and improper
packing and/or transport.

The waste of both edible and inedible parts of the commodity occurring in the
household, e.g. in the kitchen, also is excluded.

10. Other uses. In order not to distort the picture of the national food
pattern, quantities of the commodity in question, consumed mainly by tourists, areincluded
here (see also "12.Per Caput Supply") as well asthe
amounts of the commodity in question used during the reference period for the manufacture
for non-food purposes (e.g. oil for soap).Also statistical discrepancies are
included here.They are defined as an inequality between supply and utilization
statistics.The food balance sheets are compiled using statistics from various
sources.Where no official data are available, other sources of information may be
used.

Many of the supply and utilization elements compiled from available information will
not balance.Bringing together data from different sources would almost always
result in an imbalance.Beyond the problem of data sources, imbalances usually fall
into one of the following three situations:those occurring mainly in developed
countries where there is no shortage of official statistics but the information is not
internally consistent; cases in which the data are consistent but incomplete; and
situations where data are both inconsistent and incomplete.

11. Food.This comprises the amounts of the commodity in question and of
any commodities derived therefrom not further pursued in the food balance sheet that are
available for human consumption during the reference period.The element food of
maize, for example, comprises the amount of maize, maize meal and any other products
derived therefrom, like cornflakes, available for human consumption.

The food element for vegetables comprises the amount of fresh vegetables, canned
vegetables, and any other products derived therefrom.But the element food of milk
relates to the amounts of milk available for human consumption as milk during the
reference period, but not as butter, cheese or any other milk product provided for
separately in the food balance sheet.

It is important to note that the quantities of food available for human consumption, as
estimated in the food balance sheet, reflect only the quantities reaching the consumer.The amount of food actually consumed may be lower than the quantity shown in the food
balance sheet depending on the degree of losses of edible food and nutrients in the
household, e.g. during storage, in preparation and cooking (which affect vitamins and
minerals to a greater extent than they do calories, protein and fat), as plate-waste, or
quantities fed to domestic animals and pets, or thrown away.

12. Per Caput Supply.Under this heading estimates are provided of
per caput food supplies available for human consumption during the reference period
in terms of quantity, caloric value, and protein and fat content.Per caput
food supplies in terms of quantity are given both in kilograms per year and grams per day,
calorie supplies are expressed in kilo-calories (calories) per day, while supplies of
protein and fat are provided in grams per day.It is proposed to retain the
traditional unit of calories for the time being until such time as the proposed
"kilojoule" gains wider acceptance and understanding (1 calorie = 4.19
kilojoules).

Per caput supplies in terms of quantity are derived from the total supplies
available for human consumption by dividing the quantities of the food element by the
total population actually partaking of the food supplies during the reference period, i.e.
the present in-area (de facto) population within the present geographical
boundaries of the country in question at the mid-point of the reference period.Accordingly,nationals living abroad during the reference period are excluded but foreigners living
in the country are included.Adjustments should be made wherever possible for
part-time presence or absence, such as temporary migrants and tourists, and for special
population groups not partaking of the national food supply such as aborigines living
under subsistence conditions (if it has not been possible to include subsistence
production in the food balance sheets) and refugees supported by special schemes (if it
has not been possible to include the amounts provided by such schemes under imports).

The per caput supply figures in the food balance sheets represent only the
average supply available for the population as a whole and do not necessarily indicate
what is actually consumed by individuals.Even if the per caput food supply
is taken as an approximation of per caput consumption, it is important to bear in
mind that there could be considerable variation in both levels and patterns of consumption
between individuals.

For the purpose of calculating the caloric value and the protein and fat content of the
per caput food supplies, the choice of the appropriate food composition factors is
very important. For example, the choice of the food composition factors for wheat flour
depends, among other factors, on the water content, variety, and the degree of milling
involved. The choice of the corresponding factors for cheese depends on whether the cheese
is derived from whole milk, partly skimmed milk or skim milk, as well as whether the
cheese has been made from the milk of cows, sheep, goats, buffaloes or camels, and lastly
on whether the cheese is hard, semi-soft or soft. The nutritive factors can be obtained
directly from national food composition tables. These tables give the nutritional
composition of food per 100 grams of edible portion. As the quantity data of the food
balance sheets are on an "as purchased" basis, i.e. as the food leaves the
retail shop or otherwise enters the household, it is necessary that the nutritive
composition in term of edible portion is converted into this basis as well. The conversion
is made by applying waste/refuse factors to the nutritive composition in term of edible
portion. The resulting per caput total nutritive values are usually expressed on a
daily basis. In the absence of food composition tables prepared by appropriate national
institutions, use can be made of FAO's food composition factors as shown in the appendix.

For calories, protein and fat, a grand total and its breakdown into components of
vegetable and animal origin is shown at the beginning or the end of the food balance
sheet.

3. FORMATS OF FOOD BALANCE SHEETS

Various formats which have been developed over the years still exist and can be used
for the preparation and presentation of food balance sheets. The three "Sample Forms
for Food Balance Sheets" that are shown, have different headings for various columns
that need some further explanations.

FORMAT I

Available supply represents the concept of supply available for domestic
utilization.

Food (gross) is simply the balance of the available supply after feed, seed,
food manufacture and waste have been deducted. It represents the quantities directly
available to consumers before the application of extraction rates, if this is necessary.

Extraction rate applies chiefly to cereals and is used to effect a conversion of
grains to flour and of paddy rice to milled rice. This column is also used to show the
extraction of raw sugar from cane and sugar beets and of oil from oilseeds and so on. In
addition to reflecting the input/output ratio between originating/parent commodity and
processed commodity, the extraction rate also determines the choice of the appropriate
food composition factors.

Food (net) represents the actual quantities of food directly available for human
consumption after the application of extraction rates to the corresponding figures in the
Food (gross) column.

Columns 18-20 show the food composition factors which have been applied when
converting the quantities of daily per caput food supplies into energy, protein and
fat content.

FORMAT II

The headings in this second format correspond to the description of the various
elements in the foregoing section on "Supply and Utilization Elements".

Input and Output. For production, a distinction is made between
"Input" and "Output". For derived commodities, amounts of the
originating commodity required for obtaining the output of the derived product are
indicated under "Input", expressed in terms of the originating commodity. The
various factors used, i.e. milling rates, extraction rates, conversion or processing
factors, carcass weights, milk yield, egg weights, etc., should indicate the average
national rate at which these commodities are generally converted.

FORMAT III

This third format may be used when presenting a food balance sheet in standardized
form.

Food Manufacture shows amounts of the commodity in question used to manufacture
processed commodities which are part of a separate food group (e.g. fats and oils,
beverages).

Other uses comprises quantities used for the manufacture of non-food products,
e.g. oil for soap. In order not to distort the picture of the national food pattern,
quantities mainly consumed by tourists may be included here.

Food. In many cases, commodities are not consumed in the primary form in which
they are presented in the standardized food balance sheets, e.g. cereals enter the
household mainly in processed form, such as flour, meal, husked or milled rice. To take
this fact into account, the caloric value and the protein and fat content shown against
primary commodities in the standardized food balance sheet should be derived by applying
the appropriate food composition factors to the quantities of the processed commodities
and not by multiplying the quantities shown in the food balance sheet with the food
composition factors relating to primary commodities.

FORMAT IV

This format is used when describing the procedures for the preparation of food balance
sheets in the following section.

Whatever form is used, the unit of measurement (e.g. thousand metric tons or metric
tons) should be stated. Equally important is also to indicate the cut-off date to which
the figures shown in the food balance sheet refer.